ICE cotton hits two-week high on heavy rain, weak dollar

ICE’s most active December 2025 contract settled at 67.79 cents per pound (0.453 kg), up 0.38 cent. The contract touched an intraday high of 68.40 cents, the highest level since June 10. The expiring July 2025 contract settled at 66.01 cents, up 2.05 cents. Other contracts posted gains ranging from zero to 56 points. Over the past three days, cotton futures have gained between 71 and 122 points, showing continued upward momentum.

A weaker US dollar also supported cotton futures. The dollar declined on Tuesday following a ceasefire agreement between Iran and Israel, while the euro rose to its highest level since October 2021.

The total trading volume on June 24 was reported at 43,923 contracts, indicating active market participation. A total of 45,611 contracts were cleared as of the previous session, according to ICE data. ICE data also showed that certified deliverable No. 2 cotton stocks remained at 62,332 bales as of June 23, unchanged from the previous day.

Heavy rainfall in the Mississippi Delta has removed significant farmland from cotton production, contributing to bullish market sentiment. According to market analysts, crop conditions are currently unfavourable, further supporting the upward price movement.

The USDA’s Crop Progress Report for the week ending June 22, 2025, showed that 47 per cent of the US cotton crop was rated in good-to-excellent condition, down from 48 per cent the previous week and 56 per cent during the same period last year.

The US cotton planting rate as of June 22 stood at 92 per cent, compared to 85 per cent the previous week, 93 per cent during the same week last year, and a five-year average of 95 per cent.

Despite Federal Reserve chairman Jerome Powell stating that inflation may rise during summer, the dollar weakened, which benefitted cotton and other commodities.

In contrast to cotton, CBOT grain futures such as soybean, corn, and wheat ended lower on the same day.

Presently, ICE cotton for July 2025 was traded at 66.01 cents per pound (up 2.05 cents), cash cotton at 66.19 cents (up 0.56 cent), the October 2025 contract at 67.44 cents (up 0.56 cent), the December 2025 contract at 67.96 cents (up 0.17 cent), the March 2026 contract at 69.23 cents (up 0.16 cent), and the May 2026 contract at 70.25 cents (up 0.15 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

ALCHEMPro News Desk (KUL)